Malaysian Palm Oil Exports Performance to Europe Region
(Jan – Feb 2021)
A Review on MPO Performance
Table 1: A Review on MPO Export Performance (MT)
|Jan-Feb 2021||Jan-Feb 2020||Change (Vol.)||Change (%)||Jan-Dec 2020|
|Serbia & Montenegro||–||29||-29||-100||1,172|
From January to February 2021, Malaysian palm oil export to the Europe region was recorded at 211,982 MT, a decrease of 147,832 MT or by 41.09% from 359,814 MT recorded during the same period of 2020. The main reason for the drop was due to lower imports particularly by Italy, Netherlands and Spain as the high stocks during the end of 2020 and lower demand from the food manufacturing sector as well as lower demand from the biodiesel sector. Netherlands, Spain and Italy continue to be top three biggest destinations of Malaysian palm oil in the EU. In Italy, consumption of palm oil is practically the same as the newly opened biofuels plants went into full operation to fulfil compulsory blending mandates this year. This plant has the capacity to process 750,000 MT of virgin vegetable oils and waste fats and oils on annual basis.
Netherlands is the leading importer of Malaysian palm oil in this region with 126,564 MT, but this is a decrease of 62,152 MT or by 32.93% compared to the same period of 2020. This lower import volume can be attributed to the increased demand for Indonesian processed palm oil as the new tax structure enforced from January 2021 made their refined and processed products cheaper compared to Malaysia. In addition, demand normally slows down in January as most countries will take a survey of stock levels to prevent overbuying. Nevertheless, strong is expected as the widening price spread between soybean oil and palm oil in the recent weeks will see a renewed interest in palm oil. Netherlands is expected to remain firm as a palm oil importing country as they are the main hub for palm oil to be re-exported to other countries in the Europe region.
Breakdown of MPO Exports (MT)
Exports of certified palm oil (RSPO and ISCC certified) into the EU continue to be the biggest component of Malaysian palm oil exports to Europe, comprising 52% of the total. Higher uptakes are recorded mostly into Netherlands, Germany and Italy where palm oil is utilized in the energy sector. One of the reasons for the lower exports of Malaysian palm oil was due to competition from Indonesia since they changed their export duty structure for refined products. This is in addition to the discounts given by Indonesian suppliers as according to industry sources, Indonesian suppliers have been aggressively offering discounted prices of their refined products in the European market, thus reducing the intake of supplies from Malaysia.
|Malaysia’s Export to EU-28 – Breakdown by Palm Products (MT)|
|CPO FOR RSPO FROM SEGREGATED &|
INT SUSTAINABILITY N CARBON CERTIFICATION
|CPO INTERNATIONAL SUSTAINABILITY |
AND CARBON CERTIFICATION
|PMF / RBD PMF||9,125||14,928||(5,802)||(38.87)|
|RBDPS FOR RSPO FROM SEGREGATED||7,396||493||6,903||1,400.02|
|RBDPO FOR RSPO FROM SEGREGATED||3,500||–||3,500||–|
Chart 1 : Breakdown of MPO Exports (MT)
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